II. UNIT II.. C. Aggregate De mand and Aggregate Supply 1. Equilibrium real GDP and price level with stationary AD and AS 2. The depiction of cyclical.
© 2007 Thomson South-Western, all rights reserved N. G R E G O R Y M A N K I W PowerPoint ® Slides by Ron Cronovich Aggregate Demand and Aggregate Supply.
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Price Level Real GDP ($Trillions) 0 Long run AS curve: A vertical line indicating all possible output and price level combinations the economy could end.
26 Supply-Side Equilibrium: Unemployment and Inflation? We might as well reasonably dispute whether it is the upper or the under blade of a pair of scissors.
Classical vs. Keynesian Economists Which model best describes our economy?
